Albanian central bank keeps key rate at record-low of 3.5%.

By bne IntelliNews October 31, 2013

The supervisory board of Albania’s central bank decided on October 30 to keep the base interest rate at the historic low of 3.50% for the third consecutive month after cutting it by 25bps in July, the bank said in a statement on its website.

The rate setters said that low inflationary pressure coming from the financial sector and the real economy justifies maintaining monetary stimulus for the period ahead. The decision is in line with the bank’s objective to meet its mid-term inflation target.

Central bankers consider that the existent weak demand and the negative output gap continue to restrain consumer price growth. In addition, the stability of prices on the global markets and the stable exchange rate has resulted in low pressures from imported inflation. Inflationary expectations remain anchored and in line with price stability.

The central bank expects the local economy to continue growing at low positive rates in the period ahead but still below its potential. Foreign demand will remain the main economic growth driver in the short-term, while in the longer-term the bank anticipates a recovery in consumption and private investment.

In the absence of unexpected shocks on the supply side, annual inflation is expected to fluctuate in the range 0.4% - 3.1% in the next 12 months.

Related Articles

Albanian left-wing parties unite behind ruling Socialists ahead of election

Small Albanian left-wing parties have withdrawn their registrations to stand in the June 25 general election so that all their support goes to the governing Socialist Party (SP) led by Prime Minister ... more

Six Albanian ministers to leave their posts under deal between government and opposition

Six ministers in Albania’s Socialist-led government will be replaced with technical ministers as part of the agreement reached between Prime Minister Edi Rama and opposition leader Lulzim ... more

Albania postpones general election by one week to June 25

Albania will now hold a general election on June 25 instead of June 18, following the agreement reached between  Prime Minister Edi Rama from the Socialist Party and the leader of ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss